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Exhibit 99
FOR IMMEDIATE RELEASE
CD RADIO EXPANDS TO 100 CHANNELS WITH FOURTH SATELLITE
New York, N.Y. - May 29, 1998 - CD Radio Inc. (Nasdaq: CDRD) announced today
that it has exercised its option to purchase a fourth satellite from Loral Space
& Communications Ltd., doubling CD Radio's planned broadcast capacity to 100
channels in its nationwide satellite-to-car radio broadcasting system scheduled
for launch beginning next year.
"In terms of incremental value delivered to consumers, the step-up from 50
channels to 100 channels is analogous to the difference between a regular
bookstore and a Barnes and Noble superstore," said David Margolese, CD Radio's
chairman and chief executive. "The expanded system will be used to deliver more
of what people want -- more music, more choice. Additionally, it will also be
used to address the Hispanic and sports markets in a significant way, and to
generate additional advertising revenues on our non-music channels."
Under terms of the agreement, Loral replaces Arianespace as CD Radio's launch
service provider, delivering three Loral FS-1300 satellites in-orbit on a
turnkey basis along with one ground spare. Launches are scheduled for November
1999, December 1999, and January 2000. CD Radio's incremental cost of the
expanded system is approximately $290 million, of which Loral has provided
assistance in arranging $145 million of financing primarily through Bank of
America.
Last year, CD Radio was granted one of two FCC national satellite radio
broadcast licenses. The company is building a satellite-to-car 100 channel radio
system for the broadcast of music and other programming to motorists throughout
the United States. The majority of CD Radio's planned programming formats are
generally unavailable on conventional radio stations in any single market.
Furthermore, unlike conventional stations, which have an average range of
approximately 30 miles before reception fades, CD Radio's signal is designed to
cover the continental United States coast to coast. Music channels will be
commercial-free, unlike conventional stations which interrupt their broadcasts
with up to 18 minutes of commercials during every hour of music programming.
More information about CD Radio is available from the web site www.cdradio.com.
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Any statements that express, or involve discussions as to, expectations,
beliefs, plans, objectives, assumptions or future events or performance (often,
but not always, through the use of words or phrases such as 'will likely
result,' 'are expected to,' 'will continue,' 'is anticipated,' 'estimated,'
'intends,' 'plans,' 'projection,' and 'outlook') are not historical facts and
may be forward-looking and, accordingly, such statements involve estimates,
assumptions and uncertainties which could cause actual results to differ
materially from those expressed in the forward-looking statements. Accordingly,
any such statements are qualified in their entirety by reference to, and are
accompanied by, the factors discussed in CD Radio's Annual Report on Form 10-K
for the year ended December 31, 1997. Among the key factors that have a direct
bearing on CD Radio's results of operations are the potential risk of delay in
implementing CD Radio's business plan; increased costs of construction and
launch of necessary satellites; dependence on satellite construction and launch
contractors; risk of launch failure; unproven market and unproven applications
of existing technology; and CD Radio's need for additional substantial
financing.
For Further Information:
Madeline Couton, CD Radio, 212-899-5000
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CD Radio's 100 channels will offer listeners a wide range of music categories as
well as news, sports and talk radio programming. Currently, CD Radio anticiaptes
that its 100 broadcast channels will be allocated as follows:
1. Symphonic 51. News
2. Chamber Music 52. News
3. Opera 53. News
4. Top of the Charts 54. News
5. '50s Hits 55. News
6. '60s Hits 56. News
7. '70s Hits 57. News
8. '80s Hits 58. News
9. '90s Hits 59. News
10. Soft Rock 60. News
11. Love Songs 61. Sports
12. Singers & Songs 62. Sports
13. Beautiful Instrumentals 63. Sports
14. Broadway's Best 64. Sports
15. Big Band/Swing 65. Sports
16. Classic Jazz 66. Sports
17. Contemporary Jazz 67. Sports
18. NAC Jazz 68. Sports
19. New Age 69. Sports
20. Soul Ballads 70. Sports
21. Contemporary R&B 71. Entertainment
22. Classic Soul Hits 72. Entertainment
23. R&B Oldies 73. Entertainment
24. Rap/Hip Hop 74. Entertainment
25. Dance 75. Entertainment
26. Tropical 76. Entertainment
27. Latin Jazz 77. Entertainment
28. Boleros 78. Entertainment
29. Latin Contemporary 79. Entertainment
30. Merengue 80. Entertainment
31. Cumbia 81. Hispanic
32. Mexicana 82. Hispanic
33. Tex-Mex 83. Hispanic
34. Rock en Espanol 84. Hispanic
35. Country Hits 85. Hispanic
36. Modern Country 86. Hispanic
37. Classic Country 87. Hispanic
38. Folk Rock 88. Hispanic
39. Alternative Rock I 89. Hispanic
40. Alternative Rock II 90. Hispanic
41. Classic Rock I 91. Specialty
42. Classic Rock II 92. Specialty
43. Album Rock 93. Specialty
44. Hard Rock/Metal 94. Specialty
45. Blues 95. Specialty
46. Reggae 96. Specialty
47. World Beat 97. Specialty
48. Gospel 98. Specialty
49. Contemporary Christian 99. Specialty
50. Children's Entertainment 100. Specialty